Needing some guidance - old collections CC account w/ Portfolio Recovery Assoc.

[sk1922]

Hello all members!

This is my first post on myFico.com and I'm in need of some serious guidance on how to best approach/resolve my collections issue.

Some background on my situation...

• Have an old Providian credit card account that was turned over to a collections agency with a balance of 2900 (I was a college student supporting my mother and was unable to pay back the debt).
• My EX report currently shows this account to have a DoFD to be 4/2004 and the collection account with an open date of 10/2005.  It appears on all three bureaus.
• The current balance now upwards of 4500 (adding interest I assume)
• I live in Texas and a few site show SOL to be 4 yrs??  Not sure how valid this is.
• Contacted the original creditor to obtain CC account closed date and they said it will take approx. 30 days before they will get back to me.
• Called the collections agency and requested a debt validation letter last week.
• Have asked the collections agency a pay for delete - and was told flat out "No. We cannot delete it."

I am willing to pay the debt because it is mine and feel that I am obligated to do so. But before I do, I would like to make sure that I'm paying the correct amount and by carefully understanding all of my rights.

Again, I did call the collection agency and asked that they provide a debt validation letter.  I now understand that I probably should not have called them in the first place and instead should have sent a certified letter w/ a return receipt.  While on the phone with the collection agency, I specifically asked the person to provide a validation letter that outlines all dates (closed, opened, etc.), proof that they can collect on this account, etc. and how they are calculating interest broken down.  I'm doing this because I believe the account to be much older that what's being reported and I don't believe they can continue to add interest - I may be wrong here.  This account has been through multiple collection agencies which leads me to believe the dates are inaccurate and the interest fees are arbitrary.

The lady I spoke to on the phone said "they will have to research and investigate the request since they do not have this information and will send me an affidavit in the mail".  I then asked that shouldn't you have this information being that you are now the account owner?  She said, "sir we will have to send you an affidavit".

So now I'm confused - is the 4yr. SOL correct for TX? what are my next steps? should I just pay it? Is it legal for this agency to be able to go back and try to collect all the necessary information and is this normal practice when a debtor asks for a validation?

Any guidance would be greatly appreciated.

[Anonymous]

i think you've done the right thing by contacting the OC.  if you're unclear of your DOFD, it's an easy call to the OC to request a printout of your account that includes all statement dates and dates payment was received.  i have done this with my OCs for debt that is out of SOL.  in principle, i wouldn't trust what's on your CR because that info is provided by people who have interest in creatively aging the tradeline.  

i am also in TX, and the SOL is indeed 4yrs from DOFD.  in TX, the CA is obligated to respond to a DV letter within 30 days, so you must send a DV letter CMRR.  i'm not sure a phone call will get the job done, and more importantly, it is not documented on paper.  in addition to DVing the CA, DV the OC and try to work with them.  if you can convince them to recall the debt from collections, and PFD (many will not, but it's worth asking), you eliminate dealing with scumbag CAs.

see the FCRA here.. http://www.ftc.gov/os/statutes/fcradoc.pdf

see the TX finance code for debt collection here.. http://www.statutes.legis.state.tx.us/docs/fi/htm/fi.392.htm

[MarineVietVet]

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@Anonymous wrote:

i think you've done the right thing by contacting the OC.  if you're unclear of your DOFD, it's an easy call to the OC to request a printout of your account that includes all statement dates and dates payment was received.  i have done this with my OCs for debt that is out of SOL.  in principle, i wouldn't trust what's on your CR because that info is provided by people who have interest in creatively aging the tradeline.  

i am also in TX, and the SOL is indeed 4yrs from DOFD.  in TX, the CA is obligated to respond to a DV letter within 30 days, so you must send a DV letter CMRR.  i'm not sure a phone call will get the job done, and more importantly, it is not documented on paper.  in addition to DVing the CA, DV the OC and try to work with them.  if you can convince them to recall the debt from collections, and PFD (many will not, but it's worth asking), you eliminate dealing with scumbag CAs.

see the FCRA here.. http://www.ftc.gov/os/statutes/fcradoc.pdf

see the TX finance code for debt collection here.. http://www.statutes.legis.state.tx.us/docs/fi/htm/fi.392.htm

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I agree with everything you said except this. You can't DV an OC. only the CA.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[IOBA]

I would add two things to the previous posts...

- ask for a break down of all fees and interest, by date and calculation (what interest rate, etc)

- find out what the state law cap is on interest.   (Meaning, the CA may be charging you 20% interest on the debt, but state law caps collection interest at 5%.   Which would negate most of the interest they charged you.)

[getalan77]

I love this community at myfico! I post this elsewhere but would like some more detail as to what to do/send to PRA please.

My wife and I have worked really hard on our credit after a BK and personal injury.

We've worked really hard to clear up our credit and reports so I don't want to mess anything up!

There is one past account that is no longer showing on CR's and is past the SOL in California. I would have no problem paying it but..

it's with PRA and from what I've read here and elsewhere they are not to be trusted.

The first call came about one month ago and they have been calling about every 3 days. I asked the lady to send me a letter about the debt

and she said they did in 2005 and that they don't do this again. I said I will send a DV letter and she said it would be a Dispute letter.

I haven't sent any thing yet because I don't want them to report any thing to the CRA's.

We've moved some time ago and they probably don't have my current address too. I've heard about them suing in a different county

without you knowing thus getting a judgement against you so this really concerns me and also about the 1099's to the IRS.

So here is my request for help/direction as how to proceed:

Should I send a DV letter (she gave me the full account number over the phone) and ask them to also communicte only

in writing and give them our current address?

Should I also inform them regarding the SOL in California about the debt they are trying to collect?

I'm actually really concerned about them re-aging it or suing without me knowing and the 1099. The OC was Providian for about $500

but I litterally could not pay at the time and would love to settle but I've read you can't trust them to ever go away, wish I could just

pay the OC.

Thanks so much!!

[sobreezy]

Definitely send the DV letter.  And wait for their response or lack their of.  Once they do or don't respond send another DV letter letting them know that you sent them one previously and send it to the 3 CBs also so that you can show them the steps you are taking to clear up history.  Check out these links they have some good DV letters in there. http://ficoforums.myfico.com/t5/General-Credit-Topics/Frequently-Requested-Threads/m-p/10675